Superconductive Components, Inc. Reports Second Quarter Results
August 01 2006 - 10:35AM
PR Newswire (US)
COLUMBUS, Ohio, Aug. 1 /PRNewswire-FirstCall/ -- Superconductive
Components, Inc. (OTC:SCCI) (BULLETIN BOARD: SCCI) , which
manufactures ceramics and metals for advanced applications
including optical systems, thin film batteries, and
superconductors, today announced results for the three months ended
June 30, 2006. Second quarter 2006 versus 2005 highlights included:
- Total revenue increased to $1,158,434 from $713,535 - Gross
profit rose to $280,540 from $207,234 - Backlog of $2.0 million at
quarter-end Dan Rooney, Chairman, President and Chief Executive
Officer, stated, "The 62% increase in second quarter revenues was
entirely attributable to growth in product revenues. Gross profit
margin improved on a sequential quarter basis to 24.2% of revenues
from 22.7% for the first quarter 2006. Bookings were strong
throughout the quarter and backlog was $2.0 million at June 30,
2006. We continue to implement our growth strategy in the
photonics, optical coatings and thin film battery markets and
anticipate improved performance in the third quarter of 2006."
Second Quarter 2006 Results Total revenue rose to $1,158,434 for
the second quarter 2006 from $713,535 the prior year. There was no
contract research revenue in the most recent quarter versus $89,533
for the second quarter 2005. Gross profit was $280,540, or 24.2% of
total revenue, for the second quarter 2006 versus $207,234, or
29.0% of total revenue, for the same period last year. The mix of
higher value product with lower gross margin coupled with no
contract research activity contributed to the decline in gross
profit margin for the second quarter 2006 compared to a year ago.
General and administrative expenses increased to $232,524 for the
second quarter 2006 from $189,725 a year ago, primarily
attributable to the Company's incentive compensation program as
well as higher professional fees. Research and development
("R&D") expenses declined to $39,216 for the second quarter
2006 versus $58,268 for the same period in 2005 due to a change in
the Company's focus from R&D to manufacturing of Photonics
products and a re-class of labor to cost of goods sold. Sales and
promotional expenses rose to $65,993 for the second quarter 2006
from $58,412 for the prior year due to incentive compensation
related to the increase in revenues. Interest expense declined to
$3,482 for the second quarter 2006 from $24,687 for the same period
last year. This was due to the Company's completion of a private
equity financing that also included conversion of liabilities to
common equity during the second half of 2005. The loss applicable
to common shares was $48,500, or $0.01 per share, for the second
quarter 2006 compared to a loss applicable to common shares of
$130,062, or $0.05 per share, for the same period last year.
Average weighted shares outstanding were 3,425,915 and 2,439,360
for the second quarter of 2006 and 2005, respectively. Six Month
2006 Results Total revenue increased to a record $2,359,057 for the
six months ended June 30, 2006 from $1,288,594 for the same period
in 2005, an increase of 83%. The return of a major customer
following ISO 9001:2000 certification plus the addition of new
customers during the past year were the key factors in the
year-over-year increase in revenue. There was $42,092 of contract
research revenue in the first half of 2006 compared to $177,966 the
prior year. Gross profit increased 52% to $553,513 for the first
six months of 2006 from $364,088 for the same period in 2005. Gross
profit margin was 23.5% for 2006 versus 28.3% for the first half of
2005 due to product mix, which included higher value product with
lower gross margins, and the lower amount of contract research
revenue compared to the same period last year. General and
administrative expenses were $445,254 for the first half of 2006
compared to $375,744 last year. This increase was due to the
Company's incentive compensation program as well as higher
professional fees. Research and development expenses declined to
$86,392 for the first six months of 2006 from $100,336 a year ago
due to a change in the Company's focus from R&D to
manufacturing of Photonics products and a re-class of labor to cost
of goods sold. Sales and promotional expenses were $134,096 for the
first half of 2006 versus $110,934 for the same period in 2005
primarily due to incentive compensation related to the increase in
revenues. Interest expense declined to $5,506 for the six months
ended June 30, 2006 from $40,209 the prior year. The loss
applicable to common shares was $101,773, or $0.03 per share, for
the first half of 2006 versus a loss applicable to common shares of
$275,275, or $0.11 per share, for the same period a year ago. About
Superconductive Components, Inc. SCI Engineered Materials, an
operating unit of Superconductive Components, Inc., manufactures
ceramics and metals for advanced applications such as thin film
batteries, superconductors, and advanced optical systems. The
Company also provides materials for thin film applications used in
photovoltaics, electronic switches, hardness and decorative
coatings. The Company is a global materials supplier with clients
in more than 40 countries. Additional information is available at
http://www.sciengineeredmaterials.com/. This press release contains
certain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, which are intended
to be covered by the safe harbors created thereby. Those statements
include, but are not limited to, all statements regarding intent,
beliefs, expectations, projections, forecasts, and plans of the
Company and its management, and specifically include statements
regarding anticipated improved performance in the third quarter of
2006. These forward-looking statements involve numerous risks and
uncertainties, including, without limitation: the development of
the thin film battery market, the impact of competitive products
and services, the ability to adapt to technological changes, the
availability of capital, and other risks and uncertainties detailed
from time to time in the company's Securities and Exchange
Commission filings, including the company's Annual Report on Form
10-KSB for the year ended December 31, 2005. One or more of these
factors have affected, and could in the future affect, the
Company's projections. Therefore, there can be no assurances that
the forward-looking statements included in this press release will
prove to be accurate. In light of the significant uncertainties in
the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by the
Company, or any other persons, that the objectives and plans of the
company will be achieved. All forward-looking statements made in
this press release are based on information presently available to
the management of the Company. The Company assumes no obligation to
update any forward-looking statements. DATASOURCE: Superconductive
Components, Inc. CONTACT: Robert Lentz, +1-614-876-2000, for
Superconductive Components, Inc. Web site:
http://www.sciengineeredmaterials.com/
Copyright